SME Times News Bureau | 01 Jun, 2018
Indian
Sugar Mills Association (ISMA) said
that India is eyeing the Chinese sugar sector as it plans to export
1.5 million tonnes of sweetener to the world's largest importer this
year.
"India
has a surplus of 7 million tonnes in this year and the next year it
will almost be the same. So India has to find new markets for
exports," said Gaurav Goel, President, Indian Sugar Mills
Association (ISMA).
"We export to Africa, Middle
East, but China has been the market India has never tapped."
"China
imports approximately 4 to 5 million tonnes. India's export of sugar
to China has been very small. In 2007, India's sugar export to China
was 2 lakh tonnes. Now we target 1.5 million tonnes of sugar export.
The value would be $350 million," Goel added.
"When
the (Indian) Prime Minister was here in Wuhan, he mentioned to Xi
about three products from India and one was sugar. That has also
given a lot of traction and Indian Embassy as well as the (Indian)
Commerce Ministry are also interested," said Abhinash Verma,
Director General, ISMA.
Goel, however, said to match the
global sugar prices, Indian sugar mills have to bear the losses as
the cane prices in India are higher.
He said that this
year India might be in the category of countries on which tariff duty
will be only 50 per cent, which will cut its losses.
"Tariffs
are 90 per cent, but for some countries, it goes down to 50 per cent.
We believe that India this year is on that list. So our loss will be
lower because we will be able to share the duty difference with our
Chinese counterparts," Goel said.
Talking to the
Indian media, Goel said the deal is expected to be finalised by
August and exports to China might begin after September this year.
Asked about the Chinese response, Goel said: "The
response was extremely positive but also slightly sceptical because
India hasn't really always supplied."
"Once
India actually starts to supply, they will find Indian sugar far
better than that of other countries."